Struggling to keep your finances in check? You're not alone. For many, managing all their money in a single account leads to confusion and stress. But there's a simple strategy that can bring clarity and control: the Three-Account Model.

Short Summary

The Three-Account Model divides your money into three categories:
- Spend
- Save
- Invest
This helps you keep an overview:
- Prevents overspending by clearly defining what you can use for daily expenses
- Encourages saving by setting aside funds for future needs
- Promotes investment growth, helping you build long-term wealth
Setting up and automating transactions between these accounts in FinOS helps to stay on track and achieve financial stability </aside>

Three accounts - one overview

Managing money can be daunting, especially when all your funds are in one place. The Three-Account Model simplifies financial management by dividing your money into three distinct categories: Spend, Save, and Invest. This structure not only prevents overspending but also ensures that you are saving for future needs and investing for long-term growth.

Why it’s important

Did you know that over 28% of Americans have no emergency savings? (Moneyzine) The Three-Account Model is designed to ensure you never find yourself in that situation. It allows you to automate what happens when a new month starts or ends and you get your income. It builds a robust system that - let’s be honest - works more disciplined than our urge-driven brain often does.

How to implement it - a Checklist:

[ ] Set Up Your Accounts and Categorise By Type:
- [ ] Spend Account: Use this for daily expenses like groceries and bills. It's your primary checking account.
- [ ] Save Account: This is for short-term goals and emergencies. Consider a high-yield savings account.
- [ ] Invest Account: Allocate funds here for long-term investments, such as stocks or bonds.
[ ] Allocate Your Income:
- [ ] Determine a percentage of your income for each account. For instance, allocate 50% to Spend, 30% to Save, and 20% to Invest.
[ ] Automate Transfers:
- [ ] Consider setting up automatic transactions so that your urges to buy something can’t overrule your financial ambitions. At best you implement this with your real bank accounts, for starting out it can be enough to just set it up within the FinOS Accounts Dashboard to distribute your income across these accounts regularly. (see here how to do it with FinOS: xxx)
[ ] Monitor and Adjust:
- [ ] Regularly review and adjust your allocations as needed. Use FinOS’ Net Worth Overview feature to track how your assets grow over time.

Get started with the FinOS Accounts Dashboard to set up and manage your Spend, Save, and Invest accounts. Automate your transfers and start building a more secure financial future today!